According to the filing, the KDA technology it utilizes will “create a permissioned system” that sits on top of public blockchains, in this case Ethereum. In the future, though, it may expand to other networks.
“The Ethereum blockchain, a public blockchain network, is currently the only available blockchain for use by investors, although expansion to other blockchains is anticipated in the future,” the filing reads.
While the fund notes interest rate changes and general market risks among things investors need to be aware of, it also highlights “blockchain technology risk” as one of a handful of main risks associated with investing in the fund, calling it a “relatively new and untested technology.”
The blockchain not working as intended, regulatory concerns related to the technology, and undiscovered technical flaws are all present risks associated with the fund’s connection to blockchain, according to the filing.
Shares in JPMorgan (JPM) jumped 1.63% on the day, closing at $304.88.
